It may be a cliché, but recovery is a journey. While you’re working on your health, relationships and readjusting to the sober life, it can be tempting to let your finances lag behind. It’s understandable, but you might find major advantages to paying more attention to where your money is going now (and giving it ways to work in your favor while you work on yourself).
That doesn’t have to mean breaking out a spreadsheet, either — these are a few simple step[s to take to help your financial health recover as you do.
Start with stability
Early recovery is not the time for complicated budgets or strict financial rules. While your body and mind are healing, it might feel too stressful — or triggering — to start on a personal finance journey.
But putting a few financial safeguards in place can actually help you feel less stressed and anxious — not more. Start with finding solid ground — that can mean:
- Knowing what money is coming in
- Knowing what bills absolutely need to be paid
- Leaving room for flexibility and self-care
Step 1: Get clarity about where you’re at now
Just like your emotions, numbers are information. The judgement we pass upon how we feel (or how we spend) is where stress, fear and anxiety can creep in.
Give yourself the grace to be objective about your finances. Start by:
- Writing down the basics, including your monthly income (whether you’re working, getting benefits or familial support).
- Adding your essential, fixed expenses for things like housing, utilities, your phone bill, etc.
- Estimating your variable monthly costs for groceries, clothing, medications and other needs.
- Listing any debt payments. (More on those later.)
It might make you feel vulnerable to list all these things out, but knowing where you stand can help you feel less anxious. When you’re not constantly wondering if your finances are in peril, you give yourself one less thing to worry about — and more emotional space to focus on you.
Step 2: Establish a clear picture of your needs
Your priorities change when you’re in recovery. Maybe you’re skipping out on time with friends and family to go to meetings. Maybe you’re spending less time on work, or are adjusting to a new living situation.
Whatever the priorities are, paying back debt or saving for a vacation are probably not high on the list. But establishing simple order to all your competing needs, wants and dreams can help you make the best decisions for you, right now.
These might look different for you, but start by listing out your priorities and obligations, from most essential on down.
Here’s a Basic Priorities List:
Most important: Housing, food, medication and any recovery-related expenses
Less important, but still crucial: Personal transportation, work-related costs, supplemental recovery expenses
Lower priority: Everything else
Making a list of priorities is not about cutting everything in your life down to the bare minimum. It’s about protecting your stability as you process things and settle into recovery.
Step 3: Make a simple spending plan
No rigid budgets or self-eviscerating financial advice here — you’ve already got enough going on as it is. Establishing a simple check-in during this period is an easy way to keep anxiety away and your health as a priority.
Try this:
- Decide how much you can safely spend each week
- Keep one account or envelope for essentials
- Leave a small buffer for unexpected costs
Overspent one week? Not a problem — recovery is just as much about learning to trust yourself as it is about overcoming addiction. And a basic money plan can be a simple, effective way to gently monitor your progress (and work on the skills you’re building).
Step 4: Be mindful of debt
Dealing with debt on top of everything else is the last thing you’re focused on right now. And that’s O.K. — but as you work on recovery, debts can build into a bigger headache than they need to be.
But there are ways to head off issues at the pass. A little work now could save you a lot down the line.
Here’s Where to Start:
- Figure out which debts are secured (like a car or home loan) and which are unsecured (like credit cards, medical bills or private student loan debts).
- For secured debts, especially mortgages, you may find support from your local or state government. There are many programs that help homeowners stay housed through periods of upheaval, and you may benefit from their assistance.
- For unsecured debts, call your creditors and ask about a hardship program. It’s not unusual for creditors to establish hardship programs to help people repay their debts, without getting caught in a spiraling interest cycle.
- Connect with a nonprofit credit counselor, especially if you’re taking a break from working. These organizations can help you find a way to manage your debt sustainably while you’re in recovery.
Confronting your debt might look different, depending on your situation. But making a plan to slow growing interest can help you feel less stress during this period of your life — and make getting free from debt easier down the road.
When you want to tackle debts head-on
We’re here for you. Call Accredited Debt Relief to learn more about our debt consolidation program, and hope we can help you save 40% or more on eligible monthly payments.